- When you hire an estate agency, you can grant one estate agency exclusive rights to market your home (sole mandate) or multiple agencies (open mandate).
- Sole mandate means the estate agency will be focused on getting the best price foir your home, rather than beating the other estate agencies to the sale.
- Open mandate means your home will be marketed on a wider range of platforms, increasing visibility.
Home sellers have a lot more options available to them now, and it’s important to know what those options are before you commence with the sale. You want your investment to be as profitable as possible.
So you need to know that if you’re a seller and you hire an estate agent to market your home; you have a choice between an open mandate or sole mandate.
What does this mean?
- Sole mandate means you give a single estate agency the sole right to market your home.
- Open mandate means you allow multiple agencies to market your home.
Sole mandate vs open mandate: Which is the better option?
Each approach has advantages and disadvantages. Let’s look at sole mandate first:
Sole mandate benefits
- You’ll get a better price. Why? Because the focus of the estate agency will be to earn themselves the highest possible commission. With an open mandate, each estate agency will be too busy trying to beat the others to the sale to focus on getting the best selling price.
- You’ll get a better quality marketing campaign. Multiple agencies marketing the same property results in an uncoordinated marketing campaign. This could end up being a mess.
Disadvantages of sole mandate
- It’s a binding agreement. It is a contract signed between you and your estate agent, with terms and conditions attached. Withdrawing from it will incur penalties.
- Less exposure. With only one agency marketing your home, you won’t get as much visibility.
What about the open mandate? In today’s world, more properties are sold online. An open mandate means more estate agencies will advertise your property on their websites.
So open mandate is a good way to make the most of the resources available. It may also result in a lower commission, as different estate agencies compete to offer you the best deal.
Other options you should be aware of:
- Exclusive mandate
- Dual mandate
What is the difference between a sole mandate and an exclusive mandate?
The exclusive mandate means the estate agency has the exclusive right to sell the property, while a sole mandate means the seller may also market and sell the property.
Sole mandate vs dual mandate
A dual mandate means only two agencies are allowed to market and sell the property. The disadvantages are similar to that of an open mandate, in that the agencies will be competing with each other rather than trying to secure the best deal for the seller. However, it does allow you to increase the visibility of your property without having to pit multiple agencies against each other.
Looking to buy a property? Get prequalified with ooba Home Loans
Once you’ve sold your property, you may wish to put the acquired funds toward a new investment.
Getting prequalified helps you determine what you can afford. You can then compare this to the selling price of your home to help plan ahead..
Prequalification also makes it easier to acquire a home loan, as you’ll have proof you can afford the property you apply for.
For more information, contact us at ooba Home Loans, or use our free, online qualification tool, the Bond Indicator.
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